With the Q3 earnings season taking center stage, investors are all eagerly waiting to note the daily beats and misses of the mega companies.
While estimating the performance of U.S.-based machinery stocks, we believe that factors like election-induced market instability, a strong U.S. dollar, weak energy resource prices, lackluster export numbers of China and the Brexit referendum might act as spoilsport. However, the time isn’t ripe to draw any concrete conclusion, as the actual results might hold surprises.
According to the Zacks Industry classification, the industrial stocks are broadly grouped under Industrial Products, one of the 16 Zacks sectors.
Below, we briefly discuss the broader sectors’ earnings trend so far in the Jul–Sep 2016 quarter.
Our latest Earnings Trend article (released on Oct 26, 2016) reveals that roughly 43.5% of the Industrial stocks in the S&P 500 Group have reported results for the July-Sep quarter, recording 3.9% rise in earnings and 5.9% fall in revenues on a year-over-year basis (y-o-y). We predict that earnings of all the industrial stocks in the S&P 500 Group will increase 5.9% year over year, however revenues are expected to inch down 0.7% over the same time frame.
What’s in Store for these 3 Industrial Primes?
Standex International Corporation (NYSE:SXI) is slated to report first-quarter fiscal 2017 (ended Sep 30, 2016) results on Oct 28, before the market opens. The company’s average negative earnings surprise over the trailing four quarters is 1.93%. Our proven model does not conclusively show that Standex International will beat estimates in this quarter. This is because, the company carries a Zacks Rank #5 (Strong Sell) and has an Earnings ESP of 0.00% (as the Most Accurate Estimate and Zacks Consensus Estimate are both pegged at $1.23 per share).
STANDEX INTL CO Price and EPS Surprise
STANDEX INTL CO Price and EPS Surprise | STANDEX INTL CO Quote
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises. Over the last seven days, the Zacks Consensus Estimate for the stock has remained stable at $1.23 per share.
Barnes Group Inc. (NYSE:B) is set to release its third-quarter 2016 numbers, before the market opens. The company’s average negative earnings surprise over the last four quarters is 1.37%. Our proven model does not conclusively show that Barnes Group will beat estimates in this quarter. This is because the stock carries a favorable Zacks Rank #2 (Buy) and has an Earnings ESP of -4.48%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Over the last seven days, the Zacks Consensus Estimate for the stock has remained stable at 67 cents per share.
Gorman-Rupp Co. (NYSE:GRC) – expected to release its third-quarter 2016 results – has an average positive earnings surprise of 10.08% over the trailing four quarters. Our proven model does not conclusively show that Gorman-Rupp will beat estimates in this quarter. This is because, the stock carries a favorable Zacks Rank #3 (Hold) but its Earnings ESP is 0.00%. Over the last seven days, the Zacks Consensus Estimate for the stock has remained stable at 25 cents per share.
Where Do Zacks' Investment Ideas Come From?
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BARNES GRP (B): Free Stock Analysis Report
STANDEX INTL CO (SXI): Free Stock Analysis Report
GORMAN RUPP CO (GRC): Free Stock Analysis Report
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Zacks Investment Research